>> imus in the morning ♪ >> headline this morning, stocks are going up again. you will see a solid gain for the dow in just a couple of minutes. good morning, everyone.

there is a usual list of potential problems, north korea, europe, slow growth at home, massive debt at home and now bankruptcy for a california city. again, investors just shrugging it off when they're buying stocks. a small did yesterday, but we're being looki we're looking at smaller, good profit, stocks the only game in town. the fact is, so far 2013 has been terrific and "varney & company" is about to begin.

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. . stuart: good morning, "varney & company" viewers today is tuesday, april 2nd, here are the headlines we have for you today. a green energy sheet says no more of subsidies, thank you, he says that green subsidies is hurting the industry and making. he doesn't want them. a judge says yes to stockton,

california, it can file bankruptcy. can it wipe out unions contractors and what it owes to the public worker pension fun. we talked about mass migration from high-tech states to low tech states. and now the numbers to prove it. they're moving from california, to new york, and places like tennessee and oklahoma. we've got the numbers for. on "varney & company" we rarely have a chief executive of a publicly traded company on the show, that's because executives are reluctant to be speak their minds especially on politics, but today on this program, 10:35, an executive who will speak his mind. whole foods co-chief executive john mackie, john mackie-- mackie he says a collapse is coming and it's ben bernanke's coming here

he is on "varney & company" yesterday. >> what i do know is that this market lives and dies by the last word of the fed and the people at the fed have no clue what they're doing. bernanke is the most dangerous man who ever hold high financial office in the history of the united states. stuart: strong words from a very respected man. don't tell the markets. they're not listening. we're looking at the rally at the opening bell, and the opening bell is next. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪

all on thinkorswim. from td ameritrade.

>> we've got a minute until the opening bell and tell you know we're expecting a 50, maybe 60 point gain for the dow that bell rings and we start trading. >> you want to give me the reason why this market keeps going up? tell me. >> not to sound like i'm going a smart alec, clearly more buyers than sellers right now. i think this market action has continued to be good. look at what we just rode through with the news out of cyprus and yet, the market continues to make new highs. i think investors feel like they're missing something and we've got a sea of liquidity that we can surf on right now. so this market will continue to work higher. good leadership today out of the nasdaq futures as well so inthe market probably keeps working up.

what is glaring out there? why is crude oil down 100 today. copper prices aren't particularly good. i think that we may be in a no growth economy, however, a rising stock market, and however, the market move up from here, it's going to do it without me, i'm not long stocks, no way. stuart: all right. well, we hear you loud and clear, tres, thanks for joining us. see you soon. the bell is ringing, here we go. [bell ringing] we closed out yesterday 14,572, we're already 5 points higher, the first couple of seconds of business and now 6, we're getting some ground and when he all of the stocks start to move we're looking for a 50 point gain. here we go, that should take us back above 14-6. there we go, up 35. onward and upward for the dow jones industrial average and the stocks in general. got some news on apple for you today. goldman sachs, here is how they put it technically. they've removed apple from their conviction buy list and lowered the price target on the stock, so i presume, nicole, apple's

opened lower. does it count, do the analysts count anymore? >> it's unbelievable, right now this market is picking up. apple was the tech darling. goldman sachs, when apple was at $700, and some of the insiders are talking about this today on the blogs, the market blogs, goldman sachs had a conviction buy list on apple from 700 all the way down to $428. only today do they remove it off the conviction buy list and put it to a buy rating and because they're concerned about demand. not only for apple, but it's down again. >> did they have a new price target from goldman for apple? >> they did. the price target now, they reduced the prices, 575, from 660. stuart: all right. we'll bear that in mind, shall we? thanks very much, nicole, we're up 41 points in the first couple of seconds. i've got big news on the health care front. health insurers, they're going to get more money than they

expected next year running medicare advantage plans. take a look at those stocks right now, they're up some more. big gains yesterday afternoon when this first news came out. now, we've got gains of look at that, united-health group, 5%. when you start seeing stocks move in percentage terms, you know you've got yourself a serious group of winners. and that's a bunch of winners today. health insurance, i want to go back to nicole because there's another company that was cut by goldman sachs, it's hewlett-packard, and so what's happening there? >> right, so what they did, what they did, they downgraded the u.s. technology sector overall and they're bearish on the trends that they're seeing, the pc trends and this is why they moved apple off the conviction down list and downgraded it hewlett-packard to a sell rating, that's terrible, sell it? that's pretty, that's pretty-- an obviously serious call.

and goldman sachs put-- took out conviction buy less and moved into positive territory recently so we'll see if it has that reverse effect. it looks like our death watch. stuart: and goldman sachs is like the varney death watch. they're very separate. let's bring our viewers up-to-date on the news events of the day. today, north korea says it's going to restart a nuclear plant that can make a bomb's worth of plutonium a year. one day after the u.s. deployed a missile intercepting navy ship to the korean peninsula. the question, would we shoot down anything launched from north korea? that's a possibility, i guess. and china, they're reportedly responding to the threats from kim jong-un, they are sending troops and military jets to the border with north korea, clearly high tension on the korean peninsula, but no market impact. now let's move to europe. can we use the word depression there? listen to this. unemployment in the euro zone hit a record high of 12%, that

was both in january and in february. and the highest level of unemployment since the creation of the euro in 1999. more than 26 million people out of work across that euro zone. and things are even worse for young people, look at this, please. in greece, youth and employment. 58%. in spain, youth unemployment 55%. and things clearly just are not getting better over there. back here, david stockman predicting a market collapse, that was his word on this program yesterday and that collapse comes within years, he says. and let's bring in david, he joins us now. david, here is a well-known, very well respectable guy, he's all doom and gloom, but the market is up 53 points. i guess we're not paying attention to the david stockmans of this world? >> no, i don't think so, stuart, but sooner or later, there's a confrontation coming. you've recited the news in the issues, they are spreading. i'm worried about contagion, for

the first time we're now little scale selling, raising some cash. we've been in this market a long time and we are taking up some cash resevrve. stuart: that's what you and your company are doing, taking some money out of the market because you think that darker times are coming. >> a lot of events in the world are sending warning signals. china moving troops to a border with north korea. a contagion in europe. the euro zone, and the european union is about 600 million people. it's an economy, the large economy is larger than the united states. the growth rate is sozero and unemployment from 10 to 12 as you just reported in the the last two years, if you don't have robust growth, then there's a point at which stock prices get on a collision course and the profits aren't there to justify them. we are in an extended market and the market has been marvellous

and strong and it continues to be fed by all of this liquidity which is being created by the central banks. there's a point in which liquidity loses its impact. stuart: okay, when do you think that ben bernanke will say hold on a second. maybe we have to take -- put our foot on the brakes a little bit? >> bernanke has been pretty clear he's going to stay this course for the entire year, he has the votes and the fomc, the federal open market committee. he certainly starts every meeting with all the governors and on the new york fed so he goes into the meeting with 8 of 12 votes and the presidents then divide. and i don't see how that changes. the question is, if the fed prints another 50 million, buys another 50 million in treasuries, interest rates are already where they are, what have they accomplished besides raising excess reserves in banks even higher? so the multipliers are not there

anymore. the fire power of monetary policy is weak today. stuart: last word from you on the state of the economy. we've got some reasonable numbers on the growth rate of the economy and i say reasonable inverted commas. what do you make of it? >> i think we're in a period of weakness. the sequestration, the fiscal issues are having a dampening effect. we launched a payroll tax. we haven't seen full-fledged activity yet. it appears as if it's coming. i have a lower growth rate, under 2% for the entire year. >> whoa, david, thank you so much for joining us as always. we will see you again soon. thanks, david. >> thank you. imus: the dow is up 57 points, well above 40,600. okay? hold that thought, paul krugman. turns out california isn't making the comeback you were talking about in the new york times. a state auditor says that if

california's finances were held to the same standards as a private business, the formerly golden state would have a negative net worth. the numbers well into the, over 100 billion dollars. we'll bring you that number at the top of the hour, just how bad is it in california? right now, we're going to tell you how good it is for the seven early movers. health insurers get more than expected for running medicare advantage plans. one of the biggest is united-health group, that's up another 6%, i believe it had a solid gain yesterday. that billionaire investor carl icahn disclosed a stake in a speech software maker, nuance. and strong sales at retailer urban outfitters. and nasdaq agreed to buy a trading platform espeed. i'm sure it's up if it's a publicly traded company, which do i not know. is it, no, no. and disappointing forecast from the retailer, shoe carnival,

they're down 2% and again, goldman sachs cut the rating on hewlett-packard and they say flat out sell this thing and it's down 4%. goldman downgraded apple from a conviction buy to a plain old buy. and apple is up 4 points now at 432. back to the big board. we've got that 50 point gain that we were expecting from the futures activity. 59 points up now and it's holding right there. 14, 634. let me have have look at the price of oil. now it's down 80 cents, $96 a barrel. environmentalists warning we're running out of oil and natural gas and we have to focus to green energy. green is the only answer they say. after this break, our guest says that couldn't be further from the truth. in fact, we have an ever expanding supply of oil right here at home. and that's next. (announcer) at scottrade, our clients trade and invest

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>> all right. everybody, what you're looking at is a new intraday high for the dow jones industrial average, we were up 64 points a couple of seconds ago and now 56. we've never been as high as this intraday before. you know, we do have, by the way, a graphic all ready to show you when we hit 15,000. i don't want to jinx anything, but the graphic is standing ready. the greenies have been sounding the alarm on energy and say it's only a matter of time before we run out of fossil fuels. but thanks to new technology, we are dramatically increasing oil and gas production. for example, pumping out an extra 795,000 barrels of oil a day just last year. and robert is our expert on energy and joins us now. robert, give me some more numbers, please, because i'm intrigued at the idea we're not running out of oil and gas, we've got a mountain of the stuff, go. >> sure, stuart, thanks.

what's remarkable, stuart, is just in 2005 we had the chairman of exxonmobil, lee raymond saying that gas production peaked in north america and look what's happened. the shale gas revolution and the u.s. is looking at exporting large amounts of gas l and g. and on valentine's day domestic oil production up in barrels her year, the largest increase since they started keeping records in 1859 and this year eia expects production to raise 800,000 barrels a day which will set another record. if we went gung-ho with this new technology, let's go get what's hours, could we produce an extra 2 million barrels a day? could we? >> well, it's a good point, a good question, stuart. if you look at some of the recent reports from citigroup and others, they're estimating that u.s. oil production could,

within the next five years, surpass that of russia and awed ra -- saudi arabia, i study this all the time. for the u.s. to outproduce the saudis is incredible. stuart: you've got to have the politicians, powers that be, got to have them on your side, right? >> that's true, but look at the production happening on private land. n i know there's hue and cry about federal lands and water, but the off-shore is astonishing. endarko and chevron announced huge discoveries in the lower tertiary trend. we're talking billions of barrels on wells that were drilled what, 6,000 feet of water and then drilled another five miles below the mud line. these are incredible technological achievements that would have been impossible to even conceive of maybe three, four decades ago. stuart: extraordinary stuff. i want to bring your attention

to a headline in the wall street journal by a chief executive after wind company, his name is patrick jenbine. wind power subsidies, question mark? no thanks. he's saying if washington sent less money to the wind industry, it would be good for the wind industry. he doesn't want these subsidies. what do you say to that? >> it was remarkable op-ed and i was really pleased to read it, stuart. he made a couple of key points this an op-ed. he said that the subsidies are distorting the market and paid out regardless of the productivity of the wind is your bi your-- turbines installed. astounding fact and because of the subsidies the wind turbines are put up in areas where the wind resources aren't as good. it's another example how the subsidies and mandates are distorting the market and leading to suboptimal or in some

cases, bad outcomes. stuart: the president shows no sign of reversing course on green energy. he wants 12 billion dollars in subsidies for the green energy and no signs of reversing course despite the facts that you just brought to the table. >> it is remarkable, but look at what's happening in the marketplace, stuart. look at fisker automotive, the company that got loan guarantees from the federal government. they're looking at bankruptcy. look at all the other electric vehicle makers now in deep trouble. why? because there's no consumer pull. we've had a lot of government push via subsidies, but the consumers aren't buying it. so, you know, i'm hopeful, and i believe that the market is going to simply, will win out. it always does. stuart: eventually, it always does. robert, you're right. >> eventually. stuart: thank you, robert, see you again soon. to the gold report, where are we? a sharp drop.

we are down 20 bucks an ounce despite north korea, despite cyprus, it doesn't matter. despite the printing of money all around the world, it doesn't matter. gold 1581, well below 1600. and no it's not a joke, president obama says april is the month to help young people, quote, budget responsibly. liz mcdonaacdonald and charles are dying to get in on this one. ♪ we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone

who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> here is a good one for you. president obama has proclaimed that april is national financial capability month. oh, since he took office the national debt has climbed more than 6 trillion dollars, but now president obama wants to teach young people how to budget responsibly. charles, i know you're tired. you did a lot of of work last week while i was out, but i'm sure you've got enough fire in the belly for this one. charles: fire, indignation,

shock. to your points $53,000 per household the increase under president obama. stuart: that's the increase. charles: per every household watching and of course we heard not too long ago the president said a balanced budget was not one of his priorities and an interesting thing, one of the links on here will take you to the federal reserve's link and tell you how to get more from your credit card. federal reserve they've pumped up their balance and all players are somewhat guilty of not exactly budgeting responsibly, but i guess it's a good idea on paper. stuart: could be a great month though, isn't it. charles: it wasn't april fool's. >> the president is saying, listen, we encourage responsibility in the financial system, right, but he hasn't submitted, didn't submit a budget on the first monday of february, right? and we're passed that, but to the federal reserve link it says stay below your limit on your credit card. can we put up the graphic again, the debt clock, please? looked like 16, yes, 16, 759.

i distinctly remember, 10-6 on day one of the obama administration. a full 6 trillion dollars. don't call it a comeback in california yet. new at 10. the staggering negative number. california's net worth if it were run like a business and also, the lady who told princeton female undergraduates that now is the time to find a husband. she defends her position to me, but more important, to liz. when you're a freshman, you have a bigger gene pool to choose from that you're swimming in. >> no. >> the longer you take the less people to pick. men to pick from.

>> welcome, everyone, to an hour of partin vardy and imac "varned company." every deal they bai fallout of e bankruptcy. rolling on, 2013 has been a terrific year. check your 401(k). and please, smile. how much are two big wins actually worth? the head coach for the gulf coast university accepted a job at usc also making 157,000, now his salary over 1 million. that is the american dream. the woman who wrote the article

princeton women to find a husband while they're on campus joining us in a couple of minutes. she doesn't have to defend herself, she will keep talking. a new hour of "varney and company," and it is about to begin. ♪ stuart: 7:00 a.m. in california and i want to stay with stockton and the bankruptcy. here is the key question which everybody is asking. the bankruptcy declaration, the official bankruptcy, ken stockton now pump the pensions with existing retirees receiving. what do you say? >> that is the $64 million question. unfortunately calpers is not known for their understanding. they claimed stockton did not qualify for hardship status.

but the good news in all of this is the judge left the door open for pension obligations to be targeted in bankruptcy to be restructured. the city's biggest debt is $900 billion it owes calpers. some are along the line calpers will hav -- stockton will have o ask for restructure. stuart: the pensions being paid right now to retired workers of stockton, they are under threat. it is entirely possible they will be cut at some point in the future, insert the money that is owed by stockton owed to calpers will be paid, is that right? speak of the state will challenge this the entire way. what is at stake is does california law and ultimately states rights trump federal bankruptcy protection? and because the creditors by the argument before, listen, your

biggest obligation is this $900 sinkhole he set up for yourself because the pension obligations, yet you will not touch that, that is not fair. it will continue on in the court, and we could see this end up at the supreme. stuart: what is your judgment? a lot of people are getting these judgments, are they safe? >> long-term, nothing is safe. everything depends on what happens here in stockton. two dozen states are watching this very carefully. if they say we can cut the existing retirement benefits for these retirees, i think the door is wide open. right now it is 50/50 if it will even get out of court. i wish i could give you something more than that, but the state will fight this and i am sure calpers will as well. stuart: liz, do you have a comment?

liz: in the bank of the proceeding, the structure means calpers does not have presidents under the under creditors. state law says that calpers would not be predicted, the pensions could be cut. stuart: the pensions are under threat, and that is a fact, that is where we are now. that is the key point to all of this, if they're under threat in stockton, they're under threat in mammoth lakes and across the states and elsewhere as well. thanks, everyone. we have yet another intraday high. look at this, with 84 points. 14,657. we have a graphic if the dow hits 15,000. we don't want to jinx it, but the graphic is rare in reserve.

officers present also. nicole: take a look at these names. showing you both ford and gm coming out with great numbers for the month. ford's sales rose 5.7% to be specific. they did well with the fusion, the escape. the weak link in ford is actually the lincoln. reagan sales decreased, did anybody by a lincoln? and a look at general motors. like ford. stuart: thank you very much, indeed. back to the big board, we're up 80 points. bear in mind this is a bullish

rally this morning. i look at a prediction for the collapse of the market. there will be nothing to stop the collapse. this sounds like advice to get out of the market and hide out in cash, it is. charles has been bullish on individual stocks for a long, long time. i take it you totally disagree? charles: definitely. i bring them to you guys, i show them, a lot of these big names, namescome it is not even about the names. i'll have a company for you in a moment, they'v they have changer whole strategy. stuart: he does not care about individual companies. you can pick out individual companies which do very well. we keep on producing these bubbles.

charles: where is that money going right now? stuart: into the federal reserve, onto their books. charles: where is it going right now? it is going to be federal government. that is where it is going. it is not on main street yet. i don't disagree with the premise, but in the baseball game he would be in the first inning. liz: i don't agree with stockman either. the assets got wiped out, but it is not a zero sum game. game. in a collapse somebody will be cherry picking. charles: he has combined them into this nuclear bomb that will go off and we will never recover from it. i wish we didn't say the failed bank but anybody who thinks it is out in america, they are

crazy. we will not crumble overnight even though we have bad fiscal and monetary. stuart: we have 85-point up on the dow, 342 points away from 15,000 if my math is correct, which it may or may not be. he is the leader of a publicly traded company who is not afraid to speak his mind. a rare thing in corporate america today, isn't this? whole foods company chief executive joining us, libertarian capitalist defending capitalism. you will want to hear this, defending capitalism? it is unheard of, but he is on the show, promise you that. how tax increases have led to the comeback, but a california state auditor agrees with that, if the state were run like a business, it would have a net worth negative $127 billion.

charles: california is our version of greece. stuart: no, illinois is. charles: the bottom line is what we have created is a state where you see the worst-case outcome. the ultra rich, very poor, very little in the middle. how ironic the state with the highest taxes, most progressive policies has the widest income inequality gap liberal so sustained? you cannot create these policies retake witty opportunities to climb. they're willing to tax themselves, the rich people, but it is working in reverse. liz: they say they spend more than the revenues coming in, they spent more like state prison and sports arenas.

but that number does not include the state pension and retiree health liabilities. $561 billion is what they say. more than what california is spending on all of its programs combined. for both retiree, health and pension. stuart: take that. now something liz in particular has been waiting for among the rest of us. letter to the princeton. find yourself a husband before you graduate. "you will never again have this concentration of men who are worthy of you." before we meet the lady herself, this is what elizabeth macdonald had to say about it yesterday. >> when you are a freshman you have a bigger gene pool to choose from, the longer you

take, there are less people to choose from. stuart: somebody was having a go at you. liz: i think it was cheryl. stuart: let's bring in the author of that article joining us on the set. welcome to the program. first of all, when you came out with this letter, it was intense criticism, really, really angry stuff directed at you. i think things have turned full circle, people are agreeing with you. >> the crazy people came out first, meaning yelling, and then people look at the substance of what i said rather than the words i used to say it and recognize it is pretty sound advice. stuart: what is wrong with you in college partially a marriage market. >> specifically for young women, this was intended for a very small audience, the young women on the campus of princeton, even more specifically a subset of

that group, women who want to be married and have children in a traditional way. stuart: you were called a sexist for this in so many words. >> worse than this. that is okay, that is okay, i am willing to take those hits if it serves to benefit of young women on campus who want something more than just pursuing career. they're afraid to do so because they are being shouted down, intimidated into not saying one of the components i am thinking about in terms of my future is i want children and i want family. the problem is the message of men and women having totally quality is a fallacy. in many ways we do. but in this regard we don't. men have virtually their whole life to marry and have children, women don't. that is a critical, critical fallacy.

liz: i hear what you're saying. you say women have a shelf life, a time clock. stuart: they do. liz: i hate to say it again, there is a lot of single women who are not married who are very successful. trying to talk as a mother to give advice for your perspective from your experience. >> if i had daughters. then have unlimited opportunity to marry and have children. i have classmates, three and four-year-olds, clearly that is not an option for women. the women have a shelf life? their childbearing years has a stop date. they do nothing but develop their careers end up with nothing but their careers sometimes. liz: some are very happy with their careers. i am not married, i am very happy with my career. liz: that is wonderful, i am

very happy for you. but some want to have a children and the confines of a traditional marriage. liz: i did not want to have children, so i'm happy. but you are talking about women who would agree with your perspective, right? >> i'm talking about women who want to have children in the confines of a traditional marriage. start looking sooner rather than later. the pool of potentially eligible men, marriageable men shrinks and every year from your mid-30s on its shrinks dramatically and then you are up against the biological limit of not being able to bear children anymore. charles: a couple of freshman in college get married, there is a huge chance they will grow differently, they will separate and have different identities. so the chance she marries a 20-year-old kid he is not

ultimately her prince charming. if she followed a path toward a great career, could introduce her to more like-minded successful men later on were the marriage would've had a better chance of working. >> understand what you are saying. i get it. if you delay marriage until your early 30s, i guarantee you are in your 40s is not who you were in your 30s. is it perpetually evolving process. you have a heart stopping her ability to have children, so start looking early, and if you find a lifeline demand tw man, e likelihood is you can grow with him. liz: it is hard to hear people call crazy who disagree with you. it is how you present your argument, i think.

>> i got the attention of the young women i wanted to. i started a dialogue. liz: but to call people crazy. >> it is extreme, and anybody would look at it like that. stuart: one of the best interview segments we have had in a long, long time. thank you very much. >> thank you so much. stuart: how is this for irony? law school graduates pursuing their law school because they cannot find a job. tough to pick a side to rule for in that one? the judge will be here soon. and a man who is living american dream and did not get any help. he is cashing in big-time for a second time. that is my take next.

stuart: a new report from computerworld suggests blackberry plants release a larger tablet and two phone combos in the coming years. blackberry stock at $15 per share. goldman sachs removed apple from the conviction buy list.

the cost of itunes slowing production innovation. apple is up $5 at 434. microsoft boosting speculation that amazon may be working on his very own kindle phone. amazon shares at 261. and the cinderella story florida gulf coast, not his coach is headed west for a big pay raise. that next.

stuart: appl apple chief execute tim cook apologized to chinese customers over the company's warranty policy. last month they criticize apple for only giving one year warranty on iphones while in china law says it has to be two years. and here is my take on the american dream come a story of one man who really has got it all, got it all by himself, yes, america still rewards people. i give you the story of andy infield. one of the founders of track manager. he made big money when it was sold for $100 million. he is on his way. and then he meets a beautiful young woman, takes her to a basketball game, that is his passion.

she becomes a very successful model, on the cover of "vogue," she walks the runway. enfield and her get married. he is really on his way. with millions in the bank's, he becomes a college basketball coach. he is good at it it becomes a coach of florida gulf coast university. remember them? they beat georgetown last month and then they won another game to become the first 15 seed ever to advance to the sweet 16. so mr. enfield worth big bucks, married to a supermodel, three children and now king of the hill in basketball. but there is morbid fears just been named coach at usc. now that is living large. one small point, these moving from zero tax florida to 13.3% tax california, but in my book he is still living the american

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stuart: will you please look at this? i think this is another intraday all-time high for the dow. up 88 points now at 14,660. health care stocks are higher

all across the board and significantly so. give me the reason. nicole: just pick one, anyone. this is because humana says the medicare rate is improving. there was an idea there would be some proposed cuts cutting into the revenue of some of these insurers. they sai are the government ince in payment rates for medicare advantage and 2014 is making all of these stocks in this. what we're seeing is cigna at an all-time high. stuart: a solid gain in deed. thank you very much. law school graduates who can't find a job or file a class-action lawsuit against their school saying they lure them in, roll them into very expensive course i promise and then implement, and they cheated them.

all right, judge andrew napolitano is here. you're laughing? >> i am laughing because this is the industry now. these lawsuits are all over the country and they will be consolidated before one judge and in one place with all the law students who claimed they have been harmed. against all of the law schools they claimed that the harming and there will be a settlement, or a trial. was it really fraud? was it really material mr. plantation are accurate at the time it was stated and then financial times changed. stuart: did a lawsuit promise you, you come into this school, you will get a job, you will get a grade. >> that is one of the issues, or will they say things like 95% of our graduates last year got jobs. it is accurate.

that is an accurate statement. something you can't infer. that is the chance you took. stuart: you cannot make that a class action lawsuit because each relationship is different and separate. >> are now making the argument the lawyers for the law schools will make because each of these statements, each law school is unique to each law school, there is not a common set of factors. a class-action requires a group of injured persons too large to identify every member of the group. for everybody who applied to law school in the last five years. and law schools who are similar. you have to have several lawsuits. stuart: i would say the legal industry is eating its own? >> i would say that. they're undergoing radical changes. now they barely get by.

not naming names. 80 fewer students, that is millions in fewer dollars of tuition per year. stuart: some of us are happy. next topic. an animal rights group sued the ringling brothers circus, but lost the case and they were made to pay the legal fees of the defendants. that would be the circus. will there be fewer frivolous lawsuits if the loser pays across the board? >> yes, we would. we have a form of the english rule. we don't have one english syst system, we have 52, one for each state, the district of colombia and the federal system so that each have their own rules. federal court has ruled 11, it basically says if the lawyer files a pleading they know to be

frivolous the lawyer can pay the fee for the other side to resist that pleading. a similar rule exists in about half the states. stuart: a former animal worker took the circus to court saying you mistreat the elephants. subsequently rounded through the courts, the ringling brothers circus when the case and turned around and said he animal rights people, the judge agreed, that was a frivolous, unreasonable and groundless lawsuit. >> most judges in the united states has the authority to assess these. if it was groundless. stuart: why aren't they doing it more often? >> you want to keep the courthouse doors open because a lot of good has come about by litigation which would never come through legislation because the legislators lacked coach.

stuart: do you regard england as the mother country? >> no, but i think you do. [laughter] stuart: he is a fast brain. a libertarian. whole foods chief john mackey isn't afraid to speak his mind, he is going to join us in a moment.

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plus get this document shredder free-- but only if you act right now. call the number on your screen now! stuart: our guest right now is a rare chief executive officer of a publicly traded company not afraid to speak his mind on politics. not surprisingly his new book. ceo of whole foods, john mackey. very good to have you with us. why do you stick your neck out when so many others do not? >> i don't intend to stick my neck out, people ask me questions, i tried to get authentic, truthful answers. stuart: did you come up with a critique of obamacare? harshly criticized because of it. >> actually that is not true.

back in 2009 i wrote an op-ed piece when president obama asked for his church how to reform health care, i gave my suggestions. stuart: he did take them, did he? >> not so far. stuart: what is the main point of the book? >> business has the potential to have a higher purpose besides only making money in this business can create value this is the greatest value creator in the world and can create value for all the major stakeholders, customers, employees, investors, communities and environmental integrity's. behaving that way tends to outperform the market place as well. stuart: that is what you have done with whole foods? >> yes. stuart: where are you going next? >> where is whole foods? stuart: yes. >> we have 40 stores coming.

charles: everybody is talking the talk on this capitalism. who gets to determine whether they are a capitalist, who gets to make that determination and what sort of punishment should they receive? >> there is no authoritative agency that determines who is conscious and who is not. consciousness is something we're always capable of personally growing and can organizations continues to grow as well. eventually there'll be some type of magazines for example like the 100 best companies to work for. maybe the there will be a list f most conscious companies to work for. stuart: there's a lot of criticism we are indebted, low

growth, high unemployment, you name it, all kinds of problems. we are not more of more like europe. do you approve of the way america looks at the moment? >> no, i don't. i think we are going in the wrong direction and you just gave all the reasons why. creating massive deficits that will be difficult to repay. very high unemployment, we have increasing government regulations, business entrepreneurship is down, is more difficult to start businesses, so i think we are on the wrong track. stuart: would you consider yourself a critic to the obama administration this far? >> mia critics? i am a capitalist. i am a conscious capitalists. capitalism, i am supportive of the administration to the degree dozens are not supported. stuart: i have to confess i have not always been very kind to whole foods.

>> you are forgiven, you are forgiven. stuart: i've always thought of whole foods they placed the customers are essentially the liberal elite. and yet you obviously are capitalist with a strong libertarian bent, so i apologize if i have ever been nasty to your company, which i think is a terrific company. go. chastise me if you need. >> whole foods is for everything. it is not just for the liberal elite. whole foods has all kinds of customers and they don't conform to one type of politics or one type of belief systems. it is much more diverse than i think you realize. stuart: do you contribute to political campaigns? >> yes, i do from time to time. stuart: mask which campaigns you contribute to? >> i primarily contributed to

libertarian campaigns. i tend to come down on that lyrical position. so have contributed over the years to libertarian campaigns, gave it little bit or this go around to the republican party than i have historically, thought this was a very important election. stuart: has there ever been any backlash because your public in your policies? >> i suppose there is a little bit. we see it in social media. i am not trying to upset people, i'm not trying to be controversial. i appear on the media, journalists asking questions an end i tried to give honest answers and some people react to it. overall our sales remain strong and we continue to grow at a rapid pace. stuart: john mackey, we want to thank you for coming on the show today. congratulations on your new book, i am sure it will do well. thank you for being here. >> thank you. have a good day. stuart: the dow is up 84 points.

14,656 as we speak. that puts us 340 points away from 15,000, the graphic is just waiting to fly. more proof higher taxes are not the answer if we are moving from high tax states to low tax republican-led states. we will bring you the numbers after this.

stuart: no change in gas prices overnight. the national average is $3.63. still down about $0.03 over the past week. the price of oil around $96 per barrel. the latest downturn in gas prices will slow and we will hold right there. the new normal, $3.63. ford up 6% in march month over month. general motors also up 6%, that stock holding at $27 per share. goldman sachs downgrading hewlett-packard blaming weakness in the pc sector, hardware services, printing, other than that thing's are great. the stock down on the news 5%. at&t announced they will start selling their new smartphone this month. starting at $200. shares of at&t pretty flat, $37 per share. the big tax revolt at the state level next.

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stuart: hertz has hit a new high. nicole: that is right. a new forecast, rosy targets. know what rosie targets bring? new highs. the highest levels since 2007. it is bringing the other guy up along with it, avis. their car both hitting new annual highs talk about revenue growth targets for the next three years.

they see a good financial output, revenues growing up to 14% by the year 2015. so good news, good news. stuart: that will do it. we are very close to a 100-point gain on the dow jones industrial average. a minor dip yesterday, straight up today, 92, higher as we speak. let's move onto charles, make some money with a company called veraphone systems. charles: when they swipe your card, typically that is veraphone. the stock has been crushed. try to find a bottom because they underestimated where a business can take a cell phone, you automatically have that. bypassing them. this is a 30-year-old company in 110 countries, it is well established. wal-mart will not distance them.

they changed their motive and have have gone after gdp, high gdp. this is one of the names of would not be surprised sometime in the next 30 to 60 days they get an offer. stuart: you often bring stocks that do a lot of business. this is another one. charles: that is one of my bigger investment pieces. the world is on fire and we want to take advantage of it. have you heard of a country called indonesia? philippines? stuart: it means nothing to the global economy. >> are you kidding me? it is not gdp, it is growth. that is why microsoft has gone sideways for 10 years. the market rewards growth. guess where the growth is coming from. those countries, add them up, huge positives.

stuart: i have been wrong before, i'm probably wrong again. charles: well, 50/50. stuart: a new study shows we are leaving high tax blu boost its e into the low tax red states. new york, a blue state, net migration out 9%. california, negative 4%, out migration, they're leaving flat out. tennessee a gain of 4%. joining us now. always good to have you with us. is it just taxation that is the prime mover in pushing people out of the blue states and into red states? >> no, it is not the only thing. people follow jobs, and jobs follow freedom. in particular economic freedom. to economists just published an

index called freedom in the 50 states, it is a pretty striking pattern because as you have described, new york is like dead last under the freedom index and so is california for tonight, and they see people moving out. stuart: this is the exact opposite of what it is being for most of my time in the united states, california grew migrants from everywhere. i started out life in california, always meeting people from the midwest or the south or the east coast. now you're telling us that is reversed, the out is now an outflow, not an inflow, right? >> it has actually shrunk. new york's population, it is one

of the states with the lowest population growth. one of the things interesting is they have always gone massively retiree people from new york to florida, now when you look at the census data, again they have pointed this out, you see almost as many 30-year-olds, 40-year-old, 50-year-olds who are moving to florida. which is not the freest state at all, but that her business climate. so people are following jobs, and jobs are following freedom, economic freedom. stuart: thank you very much for joining us. this is an ongoing issue. >> it is. stuart: being a leader of the free world is tough enough, for president obama did not get any easier on the basketball court yesterday. we will deal with that next.

stuart: president obama prides himself to be a good basketball player. yesterday he missed 17 shots before he finally sank one. 2-for-22 overall. nothing else to be said about

this. charles: it turned out george bush adjusted the basket. it was a little bit higher. stuart: i have a headline for you. according to american bankers association, credit card delinquencies fell to levels not seen since 1994. credit card delinquencies all the way down. that is a positive. liz: it is a positive. the census data is showing fewer u.s. households have debt. charles: 1.3 trillion. liz: $1.3 trillion wiped out. stuart: recently? charles: since the great recession. stuart: consumers are in much better position credit wise than they were the last four years.

charles: people understand this is a precarious situation. stuart: look at the dow industrials right now, up 103 points. i have to believe credit delinquencies down are part of the story. charles: the risk asset. it is not a housing bubble, you can say a buying bubble, but a doom and gloom bubble, lots of other bubbles. stuart: "the highlight reel" is next. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

what's the "new" in the new new york?. to enjoy all of these years. a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com

stuart: here it is. the gender equality highlight reel. >> came out screaming and yelling. people look at the substance of what i said, rather than the words. >> is a matter of how you presented your argument. men have virtually their whole lives to marry and have

children. men don't speak to find yourself a husband before you graduate. >> i am very happy with my career. >> i want to be a foster mother. i want to adopt. stuart: that was susan patton. find yourself a husband. >> she speaks from the perspective of being a mother. stuart: she is not putting you down. >> she said women have a shelflife. i do not believe that.